The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-10-03
TELEPHONE SQUEEZE.
Increasing Business Means Advance
In Rental Rates.
Ne Definite Information from tho
stockhOIders--The Directors
Have Their say.

The ultimatum Of the Cumberland
telephone and telegraph company
has not yet been received In this city,
but will probably arrive today. Local
Manager Cook expected II yesterday.
along with the notification Of General
Manager Noel, but 1t Is supposed the
document announces adherence to the
raise, and requires careful prepare.
ton.
The directors held o meeting at
Nashville Saturday and addr essed the
following explanation to ths su5scrib-
ers In that city:
"To tho Subscribers Of the CT mbsrland Tel.
sphons and Tsiesraph CsmpAnyi
"Gentlemen--Reierring TO the recent
advance In telephone rates In this city
II has been asserted that the action OF
the company was arbitrary, and not
justified by Its businefs needs. Feel.
ing that an explanation was due you,
We desire 10 call attention to few Of
the circumstances In the conduct Of
the business that demand an increase
In rates.
"Nearly oil the appliances used In
operating the telephone are patents
that VIC do not own, but are obliged to
purchase or pay royalties for the use
thereof. In royalties alone We pay
about $50, COO per year.
Especial attention In called 10 the
peribhable nature Of all telephone tx.
tures-wires, poles, chbosrds, belle,
etc. In cities wires seldom last longer
than SIX years. We have already re-
placed considerable quantity In
Nashville. Not an exchange in the
territory but has been supplied with
switchboard apparatus In place OF up.
paratus that had been in use barely
five years. Nashville was 90 aupplied
In 1884. New boards have Just been
completed for Evansville, lad, aud
switohboArds for Memphis, Tenn, are
now being constructed. The cost OF
purchasing and placing these boards
In working trim is surprisingly large.
A telephone plant 10 In constant state
Of renewal.
"Anotber important feature 10 be-
is that the expense per
subscriber becomes larger ss the TX.
change grows. This can be easily
shown. For instance: II only two
wires are extended on line OF poles
there Ia not much probability OF their
or crossing. But II the same
wires are run on q line Of poiss con.
tanning 100 wires they become ire
quently connected, and the expense
per wire Ia enormously greater. Every
telephone user 10 familiar with
'crcesep.
Again, In an exchange q 200 sub.
scribers, one subscriber can speak
with 100 others, and we will sssume
that the attention OF ops operator 10
10 answer their calls. II
the exchange increases 10 1900 Sub.
soriberr, thea each ono Of the original
200 can speak with l,l90 others, and
II would be impossible for ono opera
tor 10 attend 10 the 200.
"Again; Say an exchange Of 900
Subscribers, accommodate by three
switchboarde, Ia increased 10 |, 200 sub.
tcribers. Three additional boards will
be- required, and on each board pro.
vision will have 10 he made for each
one Il he original 600 subscribers.
when the exchange was first ealab-
lithed In Nashville the managers
thought I, would never exceed 600
subsuiioois, and the rates we're fixed
accordingly.
mo provision whatever was made
Tor replacing worn out material or de-
probation In the plant.
"As q consequence wa have, there.
fore, advanced the rates 10 what We
consider q fair rental Tor the subtctb.
ois and The company.
"A few years ago q subscriber paying
o rental oi 500 per year could com.
municAte with only few Ct his BUSH
ness associates In central portion OF
the city. At the present time be has
ample communication with all parts
Of the city, as we'll a. In the country
for miles around. A corps OF opera.
tors unexcelled In efficiency stand
TO answer his calls. and the apparatus
Ia the best that science has invented.
The value Of the telephone TO the sub.
scriber has incr,ased enormously.
For these facilities We think the sub.
scribers should be sble 10 bear q slight
Increase In the rsle-an increase In
rate tba. will not bear companion
with the increase In value 10 The sub.
scriber.
1--WE believe We have made II suffi.
clently plain that the advance 10 not
arbitrary, and again call attention 10
the ratos In other exchanges as fol